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Business Recorder
02-08-2025
- Business
- Business Recorder
China, HK stocks book steepest weekly losses
SHANGHAI: Mainland China and Hong Kong stocks extended their declines on Friday, posting their steepest weekly losses since April, weighed down by soft domestic economic data and worries over global trade following US President Donald Trump's new tariffs. At the close, the Shanghai Composite index had fallen 0.37% to 3,559.95 points, while the blue-chip CSI300 index had lost 0.51%. For the week, the SSEC slipped by 0.94% and the CSI300 dropped by 1.75%. Both indexes booked their first weekly losses in six, and were down by the most since early April when Trump first initiated reciprocal tariffs. In Hong Kong, the Hang Seng index tumbled 1.07% to 24,507.81 points, while the Hang Seng China Enterprises index fell 0.88% to 8,804.42 points. For the week, the benchmark HSI plummeted 3.47%, recording the first weekly loss in a month and dropping by the most since early April. Trump slapped steep tariffs on exports from dozens of trading partners, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline. 'The US deals with other economies will also affect China's trade outlook,' economists at ANZ said in a note on Friday. 'If the US fully enforces around 20% tariffs and 40% transshipment tariffs on ASEAN, which accounted for 17.8% of China's exports in the first half of this year, the supply chain activity in the region will be strained.' Meanwhile, the United States believes it has the makings of a trade deal with China, but it is 'not 100% done,' US Treasury Secretary Scott Bessent said on Thursday. China's factory activity contracted in July, both official and private surveys showed, suggesting the economy lost momentum following robust growth in the first half of the year. 'After a more resilient than expected trade environment in the first half of 2025, momentum could soften a bit further in July,' said Lynn Song, chief economist for Greater China at ING, noting market attention will be shifted to trade data due next Thursday for more clues on the health of the broad economy. Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.41%, while Japan's Nikkei index closed down 0.66%.
The Star
01-08-2025
- Business
- The Star
China, HK stocks book steepest weekly losses since April on soft data, Trump tariffs
SHANGHAI: Mainland China and Hong Kong stocks extended their declines on Friday, posting their steepest weekly losses since April, weighed down by soft domestic economic data and worries over global trade following U.S. President Donald Trump's new tariffs. At the close, the Shanghai Composite index had fallen 0.37% to 3,559.95 points, while the blue-chip CSI300 index had lost 0.51%. For the week, the SSEC slipped by 0.94% and the CSI300 dropped by 1.75%. Both indexes booked their first weekly losses in six, and were down by the most since early April when Trump first initiated reciprocal tariffs. In Hong Kong, the Hang Seng index tumbled 1.07% to 24,507.81 points, while the Hang Seng China Enterprises index fell 0.88% to 8,804.42 points. For the week, the benchmark HSI plummeted 3.47%, recording the first weekly loss in a month and dropping by the most since early April. Trump slapped steep tariffs on exports from dozens of trading partners, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline. "The U.S. deals with other economies will also affect China's trade outlook," economists at ANZ said in a note on Friday. "If the U.S. fully enforces around 20% tariffs and 40% transshipment tariffs on ASEAN, which accounted for 17.8% of China's exports in the first half of this year, the supply chain activity in the region will be strained." Meanwhile, the United States believes it has the makings of a trade deal with China, but it is "not 100% done," U.S. Treasury Secretary Scott Bessent said on Thursday. China's factory activity contracted in July, both official and private surveys showed, suggesting the economy lost momentum following robust growth in the first half of the year. "After a more resilient than expected trade environment in the first half of 2025, momentum could soften a bit further in July," said Lynn Song, chief economist for Greater China at ING, noting market attention will be shifted to trade data due next Thursday for more clues on the health of the broad economy. Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.41%, while Japan's Nikkei index closed down 0.66%. - Reuters
Economic Times
01-08-2025
- Business
- Economic Times
China, HK stocks book steepest weekly losses since April on soft data, Trump tariffs
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mainland China and Hong Kong stocks extended their declines on Friday, posting their steepest weekly losses since April, weighed down by soft domestic economic data and worries over global trade following U.S. President Donald Trump's new tariffs.** At the close, the Shanghai Composite index had fallen 0.37% to 3,559.95 points, while the blue-chip CSI300 index had lost 0.51%.** For the week, the SSEC slipped by 0.94% and the CSI300 dropped by 1.75%. Both indexes booked their first weekly losses in six, and were down by the most since early April when Trump first initiated reciprocal tariffs.** In Hong Kong, the Hang Seng index tumbled 1.07% to 24,507.81 points, while the Hang Seng China Enterprises index fell 0.88% to 8,804.42 points.** For the week, the benchmark HSI plummeted 3.47%, recording the first weekly loss in a month and dropping by the most since early April.** Trump slapped steep tariffs on exports from dozens of trading partners, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline.** "The U.S. deals with other economies will also affect China's trade outlook," economists at ANZ said in a note on Friday."If the U.S. fully enforces around 20% tariffs and 40% transshipment tariffs on ASEAN, which accounted for 17.8% of China's exports in the first half of this year, the supply chain activity in the region will be strained."** Meanwhile, the United States believes it has the makings of a trade deal with China, but it is "not 100% done," U.S. Treasury Secretary Scott Bessent said on Thursday.** China's factory activity contracted in July, both official and private surveys showed, suggesting the economy lost momentum following robust growth in the first half of the year.** "After a more resilient than expected trade environment in the first half of 2025, momentum could soften a bit further in July," said Lynn Song, chief economist for Greater China at ING, noting market attention will be shifted to trade data due next Thursday for more clues on the health of the broad economy.** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.41%, while Japan's Nikkei index closed down 0.66%.
Reuters
20-05-2025
- Business
- Reuters
China cuts key rates to aid economy as trade war simmers
BEIJING, May 20 (Reuters) - China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-U.S. trade war. The widely expected rate cuts are aimed at stimulating consumption and loan growth as the world's No. 2 economy softens, while still protecting commercial lenders' shrinking profit margins. The People's Bank of China said the one-year loan prime rate (LPR), a benchmark determined by banks, had been lowered by 10 basis points to 3.0% , while the five-year LPR was reduced by the same margin to 3.5%. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The lending rate cut was announced just after five of China's biggest state-owned banks said they have trimmed their deposit interest rates. Industrial and Commercial Bank of China ( opens new tab, Agricultural Bank of China ( opens new tab, China Construction Bank ( opens new tab and Bank of China ( opens new tab reduced deposit rates by 5-25 basis points (bps) for some tenors, according to rates shown on the banks' mobile apps. Reuters had reported on Monday that the banks planned to cut their deposit rates from Tuesday. The deposit rate reductions should guide smaller lenders in making similar cuts. Banking shares edged higher following the rate decision, with the CSI Bank Index (.CSI399986), opens new tab rising 0.7%, outperforming the benchmark Shanghai Composite index (.SSEC), opens new tab. Marco Sun, chief financial market analyst at MUFG Bank (China), said the dual rate cuts were aimed at boosting credit lending and stimulating consumption. "The central bank is likely to switch to a wait-and-see approach in coming months unless external geopolitical risks deteriorate enough to extinguish hopes that the economy can stabilise," Sun said. Tuesday's rate cuts were a pre-emptive move, said Xing Zhaopeng, senior China strategist at ANZ. "One purpose is to repair commercial banks' net interest margin and get prepared for the future," Xing said, expecting one more rate cut by the end of July. The rate cuts are part of a package of measures announced by PBOC Governor Pan Gongsheng and other financial regulators before talks between China and the U.S. in Geneva earlier this month that led to a de-escalation in their trade war. Global investment banks are raising their forecasts for China's economic growth this year, after Beijing and Washington agreed to a 90-day pause on tariffs, despite uncertainty around Sino-U.S. trade negotiations. "We still believe it will be quite challenging for Beijing to achieve its 'around 5%' growth target unless it rolls out a sizable stimulus package," Ting Lu, chief China economist at Nomura, said in a note this week. "Considering the respite on the trade war, Beijing might be under less pressure to introduce the necessary stimulus and reforms." Recent economic readings show growth remains patchy and lacklustre. China's new home prices were unchanged in April from a month earlier, official data showed on Monday, extending the no-growth trend to nearly two years despite policymakers' efforts to stabilise the sector. Meanwhile, new bank loans also tumbled more than expected last month.
Reuters
08-04-2025
- Business
- Reuters
China, Hong Kong stocks rise with regional markets, Beijing support
HONG KONG, April 8 (Reuters) - China and Hong Kong stocks rose on Tuesday, steadying in the wake of stronger regional markets and government-led support after a brutal selloff triggered by concerns over trade tariffs. China's blue-chip CSI 300 Index (.CSI000300), opens new tab climbed 0.2% and the Shanghai Composite Index (.SSEC), opens new tab gained 0.3% in early trade, after both slid more than 7% on Monday. Hong Kong's Hang Seng Index (.HSI), opens new tab jumped 2% after experiencing its steepest decline since the 1997 Asian financial crisis, while the Hang Seng Tech Index added 4.5%. Beijing has publicly stepped up efforts to stabilise the market after U.S. President Donald Trump slapped a 34% tariff on China last week. China has since responded with 34% levies on U.S. imports. Sovereign fund Central Huijin Investment, dubbed the "national team", said it has bought China-listed shares via exchange-traded funds and will continue to increase holdings to "safeguard the smooth operation of the capital market." Several Chinese state holding companies have followed suit and vowed on Tuesday to increase share investment, while a slew of listed companies announced share buy-backs to support prices. Prior to Tuesday's rebound, the blue-chip CSI 300 and the Shanghai Composite Index both plummeted over 7%, while Hong Kong's Hang Seng Tech Index (.HSTECH), opens new tab dropped nearly 19% since Trump's "Liberation Day" tariffs threatened to disrupt global trade and potentially trigger a global recession. Sentiment largely stabilised in Asia trading on Tuesday with major markets starting to claw back recent heavy losses. Japan's Nikkei 225 index (.N225), opens new tab rose 6% in a broad rally, while MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was 0.1% firmer.
